Buyer cost guide
Cost of Buying Property in Spain
The asking price is only part of what buying property in Spain costs. Foreign buyers need to budget for taxes, legal fees, notary costs and potentially financing expenses on top of the property price. Understanding the full picture before making an offer avoids nasty surprises at completion.
Resale: budget ~10–11% on top
Transfer tax (ITP) at 9% in the Valencian Community from June 2026, plus notary, registry and legal fees.
New build: budget ~12–13% on top
10% VAT plus 1.4% stamp duty (AJD) from June 2026, notary, registry and legal fees.
Mortgage adds costs — but also flexibility
Valuation fees, arrangement costs and mortgage deed tax apply if financing is used.
Ongoing costs start from day one
IBI council tax, community fees, home insurance and non-resident income tax apply annually.
Calculate your total acquisition cost
Use the calculator below to get an instant breakdown for your specific purchase price — resale or new build. The figures update in real time as you move the slider.
What to budget — the complete picture
The gap between asking price and total acquisition cost surprises many buyers. Here is a side-by-side breakdown for both purchase routes on a €300,000 property.
| Cost | Resale (€300k) | New Build (€300k) |
|---|---|---|
| Purchase tax | ITP 9% = €27,000 | VAT 10% + AJD 1.4% = €34,200 |
| Notary fees | ~€900–1,200 | ~€900–1,200 |
| Land Registry | ~€500–700 | ~€500–700 |
| Independent lawyer (1%) | ~€3,000 | ~€3,000 |
| Gestoría | ~€450 | ~€450 |
| Total on top | ~€32,000 (~10.7%) | ~€39,750 (~13.2%) |
| All-in price | ~€332,000 | ~€339,750 |
- Resale property: ITP 9% + notary ~€750–1,500 + registry ~€450–700 + independent lawyer ~1% of price
- New build: VAT 10% + stamp duty (AJD) 1.4% + notary + registry + lawyer — total typically 12–13% on top
- Mortgage costs (if used): bank valuation €400–700, arrangement fee, mortgage deed tax on the mortgage deed
- Annual ongoing: IBI council tax, community fees, home insurance, non-resident income tax (Modelo 210)
Transfer tax on resale property (ITP)
The main purchase tax on resale property in the Valencian Community (which covers the Costa Blanca) is ITP — Impuesto de Transmisiones Patrimoniales. From 1 June 2026, the general rate is 9% of the declared purchase price, reduced from the previous 10% by Ley 5/2025.
Important
ITP must be settled within 30 days of signing the completion deed. Spain's tax authority applies minimum reference values — declaring a lower price to reduce the tax does not work and carries legal risk.
Note: properties valued above €1,000,000 are taxed at 11%. The reduced 9% rate applies to standard residential purchases up to that threshold.
VAT and stamp duty on new-build property
New-build properties (first sale from developer to buyer) are exempt from ITP but subject to 10% VAT (IVA) plus 1.4% stamp duty (AJD — Actos Jurídicos Documentados). The AJD rate was reduced from 1.5% to 1.4% in June 2026 by the same legislation.
- Residential new build: 10% IVA + 1.4% AJD on the purchase price
- Garages or storage rooms sold separately from the dwelling: 21% IVA applies
- You never pay both ITP and IVA — the purchase type determines which applies
A new-build purchase at €300,000 will carry €34,200 in IVA and AJD alone (€30,000 + €4,200), before notary and legal fees.
Notary, registry and legal fees
These three costs are separate from taxes and cannot be avoided in a properly structured purchase.
- Notary fees: regulated by law — typically €750–€900 on a €200,000 property, €900–€1,200 on €300,000–€500,000
- Land Registry fees: typically €450–€700 depending on purchase price
- Independent legal representation: approximately 1% of the purchase price (minimum ~€1,500) — not optional if you want proper due diligence
- Gestoría: typically €300–€600 to manage tax filings and registry paperwork
Ongoing ownership costs
Once you own the property, a set of annual costs begins. These are often underestimated by buyers focused on acquisition.
0.4–1.3%
IBI council tax
Of cadastral value, annually
€50–400+
Community fees
Per month, depending on the development
19%
Non-resident income tax
Modelo 210, even if the property is not rented
- IBI (council tax): typically 0.4–1.3% of the cadastral value annually
- Community fees (cuota de comunidad): varies widely — from €50/month in a simple block to €400+/month in a resort
- Non-resident income tax (Modelo 210): based on 1.1–2% of cadastral value even if the property is not rented — typically a few hundred euros per year at 19% for EU/EEA residents
- Home insurance: budget €200–600/year depending on property size and value
- Utility standing charges: electricity, water and gas even when the property is empty
Why all-in budget matters before you start searching
Many buyers focus only on asking price when shortlisting properties. In practice, the total acquisition cost on a €250,000 resale property is approximately €276,900 — nearly €27,000 more than the headline figure.
Starting with a real all-in budget — not just a listing price limit — gives a much more accurate picture of what can be purchased and whether a mortgage still makes sense strategically.
Mortgage support · Legado Inmobiliaria
We are authorised mortgage intermediaries regulated by the Banco de España. We manage the full process for non-resident buyers — from comparing lenders to signing at the notary.
Visit legadoinmobiliaria.es